Hurrah for the credit crunch. London is no longer one of the world's most expensive cities, while Birmingham (125th) and Glasgow (129th) have tumbled down the league table, according to a survey today. London now only ranks 16th most expensive down from 3rd place, according to the annual listing from consultants Mercer, while New York has jumped from 22nd to eighth place.

It has become so embedded in our psyche that Britain and, specifically, London, is horrifically expensive that this news will come as a shock to some people.

Lots of deluded individuals with too much money and too little common sense still fly to New York for "bargain" shopping weekends. Yet, in truth, London has been cheaper than many other major cities for years.

A mid-range hotel (for example, the four-star Tower Hotel by Tower bridge) has rooms this weekend at £85.

In New York you won't find four-star rooms under £125, and this is at a time of the year when the oppressive heat and humidity drive locals out of the city. In Paris it's a similar story.

Then try eating out. Scan down a New York restaurant menu and the prices seem no better or worse than London. But at least in Britain what you see is what you get. In New York the menu prices bear only a casual relationship to the final bill, once local taxes and absurd tipping levels are included. And no matter how lousy the service don't ever try leaving without paying the tip (even though New York restaurants are, generally, inferior to those in London).

Then pop out to a museum in New York. Perhaps you and your partner decide that the Museum of Modern Art is a must-do. Indeed it is. But that's another $40, please. Meanwhile, London's Tate Modern welcomes the world for free (or at least until the Tories axe one of Labour's truly egalitarian reforms).

Perhaps you'd fancy living in Manhattan. Now find a flat that's affordable.

Central London rents are monstrous, averaging £2,400 a month for a two-bedroom, unfurnished flat, even after coming down a fair bit over the past year. But Manhattan rents take monstrosity to new levels, with a two-bed flat costing on average £3,612.

London tube fares, however, are bonkers in comparison with the New York subway. A one-way trip on the tube will cost £4 cash (less with an Oyster card), compared with £1.38 for a one-way subway journey. But then London cabs also take you for a ride (although they do at least know where they are going).

So now that London has slipped so far down the table can we finally put to bed this nonsense that we live in the world's most expensive city and the world's priciest country?